ECONOMICS OF POWER GENERATION AND INTERCONNECTED POWER SYSTEM Notes, EE 3rd Semester Notes

Power generation economics and the interconnected grid system are essential for understanding the efficiency, cost, and reliability of electricity supply. This section will cover key terms, load management, the choice of generator units, and grid system faults that affect power systems.


3.1 Related Terms

3.1.1 Connected Load
  • Definition: The total electrical power required by all electrical devices connected to the power system at any given time. It is the sum of the rated capacities of all electrical equipment.
  • Importance: Helps utilities plan for capacity and infrastructure to meet demand without overloading the system.
3.1.2 Firm Power
  • Definition: The reliable power supply that a utility promises to provide to customers, regardless of any disruptions or outages.
  • Importance: Ensures the utility has enough resources to supply constant power, even under adverse conditions.
3.1.3 Cold Reserve
  • Definition: Power generation capacity that is available but not running; it takes time to bring these units online (hours to days). Cold reserves are usually used in emergencies.
  • Importance: Provides backup during unexpected outages or demand spikes, ensuring continuity of service.
3.1.4 Hot Reserve
  • Definition: Generating units that are operational but not supplying power to the grid. They can be brought online quickly (within minutes or hours).
  • Importance: These reserves ensure the grid can quickly respond to short-term increases in demand or sudden loss of generation.
3.1.5 Spinning Reserve
  • Definition: Extra generating capacity that is online and synchronized with the power grid but not supplying load. It can be immediately activated to meet sudden demand or to compensate for the loss of another generator.
  • Importance: Provides immediate backup to maintain grid stability and avoid blackouts.
3.1.6 Cost of Generation
  • Definition: The total expense incurred in producing electricity, which includes fuel costs, maintenance, labor, and capital costs of equipment.
  • Importance: Determines electricity tariffs and influences decisions on power plant operation and investment in new technologies.
3.1.7 Average Demand
  • Definition: The average power consumed over a specific period, often measured over 24 hours.
  • Importance: Helps utilities plan for consistent power generation and efficient operation of plants.
3.1.8 Maximum Demand
  • Definition: The highest level of electrical demand recorded during a specific period (typically over a day, month, or year).
  • Importance: Used to size the electrical infrastructure and ensure there is sufficient capacity to meet peak demand.
3.1.9 Demand Factor
  • Definition: The ratio of maximum demand to the total connected load.
  • Formula: Demand Factor=Maximum DemandConnected Load\text{Demand Factor} = \frac{\text{Maximum Demand}}{\text{Connected Load}}
  • Importance: Indicates how efficiently the electrical system is being utilized.
3.1.10 Plant Capacity Factor
  • Definition: The ratio of actual energy produced by a power plant over a period to the maximum possible energy it could have produced if it operated at full capacity.
  • Formula: Plant Capacity Factor=Actual OutputMaximum Possible Output\text{Plant Capacity Factor} = \frac{\text{Actual Output}}{\text{Maximum Possible Output}}
  • Importance: Measures how well a plant is being utilized and its efficiency.

3.2 Base Load and Peak Load Plants

Base Load Plants
  • Definition: Power plants that run continuously to supply the minimum level of demand on the grid. These plants are designed for constant and efficient operation over long periods.
  • Examples: Coal, nuclear, and large hydroelectric plants.
  • Characteristics:
    • High capital cost but low operating costs.
    • Slow to start up and shut down but reliable for steady power generation.
Peak Load Plants
  • Definition: Power plants that operate during periods of high demand, typically during mornings and evenings when consumption peaks.
  • Examples: Gas turbines, diesel generators, pumped storage hydro plants.
  • Characteristics:
    • Quick to start and stop.
    • Higher operating costs but essential for meeting demand fluctuations.

3.3 Choice of Size and Number of Generator Units

The decision on the size and number of generator units in a power plant depends on several factors:

  1. Load Characteristics: If demand is relatively constant, larger units may be preferred for efficiency. For highly variable demand, multiple smaller units may be better.

  2. Reliability: Multiple small units provide flexibility and redundancy. If one unit fails, others can continue to supply power, minimizing the risk of outages.

  3. Cost Considerations:

    • Large Units: Lower capital and maintenance costs per MW of power generated but have longer startup times.
    • Small Units: More expensive per MW but offer operational flexibility and faster response to changes in demand.
  4. Grid Requirements: Larger grids can accommodate larger units, while smaller, isolated grids may need more flexible, smaller generators to handle load variations effectively.


3.4 Causes, Impact, and Reasons of Grid System Faults: State Grid, National Grid

Causes of Grid System Faults
  • Overload: When the demand on the grid exceeds the supply, leading to system stress and potential blackouts.
  • Short Circuits: Electrical faults like short circuits can cause outages and damage equipment, leading to cascading failures across the grid.
  • Equipment Failure: Aging infrastructure, transformer failures, or malfunctioning protective devices can disrupt power supply.
  • Natural Disasters: Events such as storms, floods, and earthquakes can damage transmission lines, substations, and power plants.
Impact of Grid Faults
  • Blackouts: Widespread loss of power, impacting homes, businesses, and essential services.
  • Economic Losses: Prolonged outages can lead to significant financial losses, particularly for industries reliant on constant power supply.
  • Damage to Equipment: Sudden power interruptions can damage sensitive electrical and industrial equipment, leading to further expenses.
  • Safety Risks: Power failures in critical areas such as hospitals and public infrastructure pose safety risks to the population.
State Grid and National Grid
  • State Grid: Operates within a specific state, managing the supply and demand of electricity. It may be interconnected with other state grids for power sharing during shortages or surpluses.
  • National Grid: A unified grid system that connects the power systems of different states across the country. It enables the transfer of electricity between regions and improves the overall reliability of the power supply. The national grid can compensate for localized issues by distributing power from other regions.

Understanding these economic and technical aspects is crucial for managing and optimizing power generation systems. Efficient operation of the power grid, along with appropriate choices in generator unit size and grid stability, ensures a reliable electricity supply across regions.

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